EXPLORATION ’95 — Kirkland Lake region undergoing

After years of relative quiescence, exploration activity is once again on the upswing in Ontario’s prolific Kirkland Lake gold camp. With a past production history totalling nearly 39 million oz. gold, small wonder so many junior and senior mining companies are taking a fresh look at the region.

At the eastern edge of the belt, AJ Peron Gold (TSE) owns the historic Kerr mine and mill complex (formerly the Kerr Addison mine). In situ reserves are estimated at 790,000 oz., and exploration with three drills is continuing. Mine production in 1995 is expected to reach 50,000 oz. gold. Just west of the Kerr mine property, Armistice Resources (ME) is carrying out underground exploration and development at its Virginiatown property. In February, the company completed the ramp access into the Sheldon 185N zone and is now collecting a 5,000-ton bulk sample. Recent drilling into the zone returned intersections ranging from 0.32 oz. over a true width of 13.7 ft. up to 0.59 oz. over a true width of 30.1 ft. According to consulting engineer Glen Hogg, these holes indicate that the zone is a lot wider than anticipated. “We’re now looking at widths of up to 30 ft., as opposed to 7 ft.,” Hogg says.

After the 185N zone is sampled, 2,500-ton bulk samples will be collected from both the Armistice 100N and the Sheldon 260N zones. All of the bulk samples will be processed locally.

Once the sampling is completed, a production decision is expected. The three zones currently contain drill-indicated reserves of 242,224 tons grading 0.175 oz. above the 2,2250 level, with an additional 114,984 tons grading 0.185 oz. below that level.

A deep drilling program will also be carried out on the Kerr horizon, which was the primary ore zone at the nearby Kerr mine.

Farther to the west, in McVittie and McGarry twps., Hemlo Gold Mines (TSE) has signed a deal to explore deep gold targets on Northfield Minerals’ (TSE) Fernlund, Cheminis and Bear Lake properties. Collectively, the properties cover a 4.2-mile strike length on the Kirkland Lake-Larder Lake Break. Later this spring, Hemlo plans to drill several deep holes to explore gold targets beneath the Fernlund and Bear Lake zones, at vertical depths of 1,500 to 2,300 ft. below surface.

Under the agreement, Northfield retains ownership of the mining rights from surface to a maximum depth of 2,200 ft. beneath the Cheminis mine. Similarly, it holds the mining rights from the Cheminis mine eastward to Bear Lake, to a vertical depth of 1,035 ft.

At the Cheminis mine, Northfield has embarked on a $1.6-million exploration and development program aimed at proving up additional reserves. Drill-indicated reserves stand at 1.8 million tons grading 0.162 oz. gold. In the southwestern corner of Hearst Twp., Panthco Resources (CDN) holds a 50-claim property believed to cover a portion of the Larder Lake break. A recent induced-polarization survey over the claims was successful in outlining several gold targets and one diamond target.

Panthco also has 51 claims in Gauthier and McVittie, which are optioned to a private British Columbia company.

Elsewhere in Gauthier Twp., Beaverhouse Resources (a wholly owned subsidiary of Toronto-listed Royal Oak Mines) and Queenston Mining (TSE) are planning a surface exploration program on the past-producing Upper Beaver mine property. Beaverhouse, the project operator, holds a 51% interest in the property, which produced 174,000 oz. gold and 16 million lb. copper from magnetite-rich seams before closing in 1971.

Exploration to date has uncovered four new copper-gold zones — the Syenite, Contact, North, and West — which have yielded, respectively, drill intersections of 1.4 oz. gold over 21.2 ft.; 0.171 oz. gold and 0.42% copper over 45.5 ft.; 0.157 oz. gold and 1.01% copper over 62 ft.; and 0.06 oz. gold and 0.63% copper over

20 ft.

During the first and second quarter of this year, gridding and magnetic and induced-polarization (IP) surveys will be completed over the Gauthier group volcanics situated immediately south of the mine.

A 10,000-ft. drill program will then be carried out to test some of the previously delineated zones and any new geophysical targets. A 1995 work program is also being planned on the adjoining Lac McVittie property, which is owned 21% by Royal Oak, 20% by Queenston, 10% by Sudbury Contact Mines (TSE) and 49% by Barrick Gold (TSE).

In addition, having recompiled all the existing airborne geophysical data from the Kirkland Lake belt, Queenston hopes to drill-test several new targets on some of its other holdings in the region later this year. The company controls some 30,000 acres in the camp, covering about 10 miles of strike length along the Main break.

Queenston also reports that positive steps have been made to place the Anoki-McBean mill and mine complex back into production. This is a joint venture with Inco (TSE). However, a new party is believed to be interested in acquiring Inco’s 65% share. In 1988-89, the partners drove a ramp and completed a feasibility study on the Anoki deposit, which contains minable reserves of 650,000 tons grading 0.136 oz. gold.

Charles Page, Queenston’s executive vice-president, says that, under the deal, reserves would be processed at the McBean mill. Production is expected to be about 20,000 oz. per year.

If the project is given the green light, Queenston will also reassess the near-term production potential of its Upper Canada gold mine, which contains geological reserves of 1.8 million tons grading 0.28 oz. gold. Drills are once again turning on Sudbury Contact Mines’ Victoria Creek property in northern Gauthier Twp. The goal of this 80-hole program is to establish the continuity of the eastern portion of the Main zone, which contains 2.75 million tons averaging 0.174 oz. The western portion of the zone contains an additional 2 million tons grading 0.07 oz.

Other objectives of the current surface drill program are to test for extensions of the Main zone along strike and at depth, as well as to complete exploration drilling on other targets outside the known area of mineralization. The favorable horizon extends 2 miles west and 11 miles east of the Main deposit.

Once the drilling is completed, Sudbury Contact will select an appropriate site to sink a 3,000-ft. shaft. Underground work will include driving two 5,000-ft. exploration drifts and completing 30,000 ft. of drilling. The underground work is estimated to cost $25 million, and shaft-sinking is to begin in late 1995.

Contiguous to, and south of, the Victoria Creek property, International Homestead Resources (VSE) is planning a spring drill program on its DKO property. Previous drilling intersected anomalous gold values in an alteration zone which is thought to be similar to both Hemlo’s Lightning Zone near Matheson, Ont., and the Victoria Creek discovery.

The new program will test the alteration zone to a depth of 2,200 ft. and along a strike length of 4,500 ft.

International Homestead announced that it had optioned the 21-claim-unit Nickila Lake property in Morrisette and Bisley twps. The Nickila Lake claims contain at least nine INPUT electromagnetic anomalies striking east-west over 2.5 km. The linear trend of the anomalies suggests a shear or fault zone, possibly with disseminated sulphides.

The company also holds other claims in Morrisette Twp., and additional properties in Lebel and McVittie twps.

On the Amalgamated Kirkland property in Teck Twp., Cyprus Canada has resumed drilling the Cyprus zone. Late last year, the company announced a geological resource in this zone of 1.9 million tons grading 0.16 oz. gold. This year’s 5,000-metre program is designed to identify an extension of the Cyprus zone and/or an on-strike or parallel shoot, which will significantly expand the current resource estimates.

Cyprus can earn a 70% interest in the property from Queenston Mining by making semi-annual cash payments, spending $250,000 on exploration every six months and providing Queenston with a positive feasibility study. At the western edge of the Kirkland Lake camp, a major exploration
and development program is under way at Barrick Gold’s (TSE) producing Macassa gold mine.

The multi-phase exploration program, budgeted at $2.5 million, includes 100,000 ft. of underground drilling, 1,200 ft. of Alamack raising, and 2,500 ft. of ore development.

Some of the drilling is for ore redefinition, and will be used to take the mine from an underhand cut-and-fill to a long-hole mining method. The bulk of the drilling will be done to evaluate the updip extension of the 05 break, which is a secondary break 1,400 ft. north of the Main (04) break. Barrick also plans to spend $7.9 million on refurbishing the No. 2 shaft and redeveloping the eastern portion of the mine. Much of the work will focus on pillars and the extensions of known mineralized zones.

Minable reserves (including proven, probable and possible categories) accessible from the No. 3 shaft are reported to be 1.7 million tons grading 0.49 oz. gold. Macassa is targeted to produce 70,000 oz. gold in 1995. Farther west in the Matachewan area, Royal Oak is carrying out an 18,000-ft. surface drill program on its Matachewan project. The drilling will test the periphery and depth extent of the known mineralization.

An advanced-stage study is also being completed to decide if additional drilling will be completed from surface or underground to upgrade the current geological resource of 600,000 oz. to “mineralized material” (a Royal Oak reserve category).

The known mineral inventory occurs in a disseminated, quartz-pyrite-gold stockwork hosted by a thick, east-west-striking and steeply south-dipping syenite dyke, at or near the contact between metasediments to the north and mafic volcanics to the south.

Other companies with projects in the Kirkland Lake area include Regal Goldfields (CDN), Strike Minerals (CDN), Freewest Resources Canada (TSE), Kinbauri Gold (CDN), Kalahari Resources (VSE), Kennecott and Greater Lenora Resources (TSE).